USD/CAD Down 15 Pips in Last 4 Hours, 2 Day Up Streak Snapped; is Inching Close to 20 and 200 Day Averages

USD/CAD 4 Hour Price Update

Updated June 19, 2020 09:23 AM GMT (05:23 AM EST)

USD/CAD is down 15 pips (0.11%) since the last 4 hour candle (opening the current 4 hour candle near 1.358), marking the 3rd candle in a row it has gone down. Compared to its peers in the Forex, USD/CAD gave its buyers a return that ranked 29th in terms of percentage change since the last 4 hour candle.

USD/CAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

USD/CAD entered today at 1.35905, down 8 pips (0.06%) from the previous day. Relative to other instruments in the Forex asset class, USD/CAD ranked 35th the previous day in terms of percentage price change. The price chart of USD/CAD below illustrates.

USD/CAD Technical Analysis

Coming into today the current price of USD/CAD is sitting close to its 20, 50, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 37.1 pips away. Volatility for USD/CAD has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving up. It should be noted, though, that a trend in the opposite direction, going down, exists on the 30 and 90 day timeframes. Or to simplify this another way, note that out of the past 30 days USD/CAD’s price has gone down 16 them. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing pin bar pattern appearing here.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on USDCAD, with 17 buy signals on our radar and 13 sell signals. This imputes a buy/sell ratio of 1.31, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a wedge technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Price has reached the upper part of the channel and price will soon be rejected. The stochastic indicator has been clearly overbought and will drop once both lines cross.